Village Builders in Creemore has been in the construction business for over 30 years. We build custom homes and specialize in renovations and additions.

Thursday, July 28, 2016

Geothermal VS Propane Heating In The Country

For the past 10 years the debate between installing a geothermal furnace compared to a propane furnace has boiled down to a trio of issues;

The size of the house that you are building,

The available space to install the geothermal ground loops,

Your overall house budget.

The larger the house the bigger return on the geothermal and the faster it pays you back for the increased cost. The ground loops are the most efficient energy and cost installation method and they do require a lot of room to install. The budget of the house is greatly effected by the heating system as geothermal is a lot more expensive then a propane based heating system.

Lately there has been a change in the conversation around geothermal vs propane, it's the cost of electricity. Ontario has the highest electricity rates in North America and they are only going to go up. This is driving the cost of heating with geothermal up a lot more then it ever has, compared to the price of propane which goes up and down in price but overall is still not rising as a whole more then the electricity rates.

Even though geothermal furnaces are far more efficient then propane furnaces, the rising cost of electricity is making the savings almost non existent as propane hasn't risen as steeply.

The payback for choosing geothermal is becoming so long that with the rising cost of electricity there is going to come a time when geothermal stops saving you money all together.

The one major advantage that geothermal has over propane is that geothermal has ultra efficient air conditioning where propane cannot produce air conditioning at all and has to use a conventional air conditioner which uses electricity at a much more inefficient way which costs you more on your electricity bill then geothermal.

Because of the constantly changing landscape of the electricity market with its extra fee's and rising rates serious thought most be taken when choosing your heating system. Only you the homeowner can make the final decision on what heating system you want, all your contractor can do is give you the information. The final decision is up to you the homeowner which road to go down.
When you are planing out your new build with your contractor a large amount of time should be spent on what your heating system should end up being.

Take your time and way the options, because this will affect you in the future.